The Progressive Income Tax

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I have heard Thom explain the gratuated income tax on several ocassions. Saying something to the extent that a wealthy person pays the same on his first $15,000 of income as a poor person does. Basically, that each bracket is independent of the next and all persons are taxed the same for the income one makes within each bracket. Is this really how it works? I'm looking for information on this, but I don't seem to find it anywhere. Not doubting the guy at all, just looking for some other source on the matter. Thanks!

hellbent's picture
hellbent
Joined:
Jul. 31, 2007 3:01 pm

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Oh good! Found another source. Hate to answer my own questions, but then this is how one learns. http://www.ehow.com/info_7752786_six-tax-brackets.html

If this is how the income tax works, then doesn't it make it a little more fair? As oppose to the fair tax.

hellbent's picture
hellbent
Joined:
Jul. 31, 2007 3:01 pm

Income taxes are based on income. However, salaried income is treated one way...capital gains income another.

A billion dollar bonus is taxed as a capital gain..... 15% tax rate.

The wealthiest Americans, such as Warren Buffett, pay a maximum tax rate of 15% on the bulk of their income.

All income isn't treated equally. It depends on the source. Wage income for labor is taxed one way...non-wage income another.

Retired Monk - "Ideology is a disease"

polycarp2
Joined:
Jul. 31, 2007 3:01 pm

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